State Rep. Greg Wren plans to introduce a three-bill legislative package that, if passed, would make it state policy to honor all of the existing 48,000 PACT contracts.

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Wren’s package would also redesign the PACT board, make that board report to the state Legislature on an annual basis and report to a new 25-member advisory task force on a quarterly basis. The task force would include legislators and two PACT contract holders from each of the seven congressional districts. Legislators also would serve on the new PACT board.

That’s the good news.

The bad news? Huntsville Times reporter, Bob Lowry, covered the State Board of Education meeting yesterday:

The state Board of Education Thursday approved tuition increases of 19.7 percent for all of Alabama’s two-year community and technical colleges.

As the four-year colleges and universities have increased tuition at rates approaching 10% per year (or more!), the community colleges and two-year colleges have been been the only bright spot as PACT writes tuition checks for contract holders.

On the flip, Alabama Treasurer candidate, Jeremy Sherer, shares his thoughts and Kay Iveychanges her tune and welcomes PACT contract holder involvement!

You have to wonder about his job as Chancellor.  Sure, he kept tuition down for a while, but is there much difference between a 5% increase spread over 4 years and a 20% jump in a single year?  It looks like the schools were slowly being starved for funds and the situation finally got critical.

Jeremy Sherer, one of the Democratic candidates for Treasurer, released a statement:

Since the beginning of my campaign, I’ve advocated legislative action regarding PACT mirroring that of Rep. Wren. I support each of Rep. Wren’s three pieces of legislation relating to PACT reforms, and I believe they reflect part of the comprehensive solution to PACT. These 48,000 families who’ve contracted with the state need the state’s guaranteed assurance that their children’s and grandchildren’s contracts for college education will be honored. Further, the standing PACT board clearly does not represent all interests that hold vested interests in PACT’s vitality. Namely Wren’s legislation adds representation from the contract holders and the legislature in order to increase the oversight and accountability of PACT. This too is a much needed reform within PACT’s structure and operation.

However, in the realm of politics, Wren’s legislation represents exactly what Governor Riley and others have stated that they would not support – an unfunded mandate.

Sherer’s solution?

This timeline should include “bridge funds” that should flow into PACT in the short term future, so as to take maximum advantage of the growing economy and rebounding financial indices - I believe the Unclaimed Property Fund, valued a nearly $400M and maintained by the Treasurer is an apolitical, uncommitted source of funds that could serve this purpose; second, there must be a commitment to reduce administrative costs of PACT, which are more than 10% of PACT annual expenditures; thirdly, there must be a commitment to give stable, predictable funding to higher education institutions,thus stabilizing tuition so that responsible investments can be made with PACT funds.

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The only way to reduce the rising costs of tuition for families, and reduce the frequency of budget cuts in our primary K-12 schools is to stabilize state funding for our colleges, universities, and schools. Whether the answer is to create a new funding stream into the education trust fund or to reprioritize where out state’s finances are dedicated, something must be done because our state’s financial commitment to education does not reflect the rhetoric we place behind it.

Administrative costs of 10%? Now, my 401k and mutual funds have expenses well below that.  Sherer is exactly right about the need for more oversight and accountability.

We’ve been paying these investment mis-managers 10% of PACT expenditures as the program lost value?

Wow.  I can’t wait for Governor Kay Ivey to do for Alabama what she did for PACT!

And speaking of Kay Ivey, she reacted with enthusiasm to Rep. Wren’s bills:

“We consider proposals, concerns and information every time we gather as a board,” she said. “We welcome legislative proposals to ensure the financial security for all the students we serve.”

That’s a surprising statement coming from a woman who routinely advises parents attending PACT board meetings to keep quiet or they’ll be kicked out.  And who regularly brushes off requests by parents to work with the board.

So now Ivey welcomes a bill that gives PACT parents the ability to help oversee and participate in the program’s management?  It’s about time. She certainly wasn’t looking for parental input in March when the board appointed a committee to work with the Legislature to fix PACT.  The parents at the meeting asked to have a parent representative included – a request that Ivey stonewalled and tried to laugh off:

We need a PACT board that welcomes oversight and parental involvement.  We need a competent Alabama Treasurer and Governor who listen to citizens and encourage their participation in solving this state’s many problems.